Nepal Country Partnership StrategyFY 2014-2018

The World Bank Group

Nepal has made good progress on poverty reduction…

…but vulnerability remains high, especially in rural areasPockets of poverty are concentrated in the Western Hill regions

Most of the poor are densely populated in the southern plains.

Poverty reduction has been driven by remittances…

…but reducing poverty further will require faster and more sustainable growth.

Development Challenges and Opportunities

Faster, inclusive and sustained economic growth Political stability/policy certainty as key prerequisite Poor infrastructure as major bottleneck

– Energy– Transport

Regulatory environment/financial sector stability Agriculture as source of growth and poverty reduction Opportunities: quality health/education and skills Governance and management of public expenditures

WBG Country Partnership Strategy (FY14-18)

Pillar 1: Increasing economic growth and competitiveness Pillar 2: Increasing inclusive growth and opportunities for shared prosperity

Outcome 1.1: Increased supply of electricity, including import, and improved access to reliable and affordable electricity within Nepal

Outcome 2.1: Increased agricultural productivity and commercialization

Outcome 1.2: Improved transportation connectivity, internally and with India

Outcome 2.2: More equitable access to education and skills development, of higher quality and relevance

Outcome 1.3: Improved environment for private sector investment, including increased financial sector stability

Outcome 2.3: Improved health and nutrition services, particularly for the poor and disadvantaged

Outcome 2.4: More efficient and transparent social safety net system

Overall Objective: to support Nepal’s aspirations for increasing economic growth through increased investments in key sectors while providing support to make growth more inclusive and to help equalize opportunities across groups and communities.

WBG Country Partnership Strategy (FY14-18)

Pillar 1: Increasing economic growth and competitiveness

Outcome 1.1: Increased supply of electricity, including import, and improved access to reliable and affordable electricity within NepalOutcome 1.2: Improved transportation connectivity, internally and with IndiaOutcome 1.3: Improved environment for private sector investment, including increased financial sector stability

Pillar 1: Removing the binding constraints to private investment and growth by focusing on energy, transport, the financial sector and the enabling business environment.

WBG Country Partnership Strategy (FY14-18)

Pillar 2: Increasing inclusive growth and opportunities for shared prosperity

Outcome 2.1: Increased agricultural productivity and commercialization

Outcome 2.2: More equitable access to education and skills development, of higher quality and relevanceOutcome 2.3: Improved health and nutrition services, particularly for the poor and disadvantaged

Outcome 2.4: More efficient and transparent social safety net system

Pillar 2: Increasing inclusive growth and providing historically-disadvantaged Nepalis with opportunities to improve their resilience and increase their prosperity.

WBG Country Partnership Strategy (FY14-18)

Cross-Cutting Dimensions Governance–Manage public expenditure efficiently and

effectively– Improve public procurement– Strengthen demand-side / social

accountability Gender Climate Change

WBG Country Partnership Strategy (FY14-18)

Implementation Financing

– IDA: $200-300 million/year– IFC: $300-800 million in hydropower; $20-40 million financial institutions,

manufacturing, agribusiness, services – MIGA: Potential for 1-2 risk guarantees

Knowledge PartnershipsLevel of Engagement Engagement Areas Top Five Development Partners

(size of commitments)

CPS Engagement Areas Electricity WBG, Germany, ADB, China, IndiaTransportation WBG, ADB, Japan, India, SwitzerlandFinance WBG, UK, ADB, Norway, GermanyAgriculture ADB, WBG, UN, USAID, Switzerland, EUEducation/Skills WBG, ADB, EU, Denmark, UNHealth/Nutrition/Sanitation WBG, UK, USAID, Global Fund, Germany

Prior WBG Areas Primary/Basic Education WBG, ADB, EU, Denmark, UNPeace and Reconstruction WBG, EU, UN, Denmark, GermanyUrban Development ADB, Germany, Japan, WBG, UNLocal Development ADB, India, UK, WBG, FinlandSocial Development UN, USAID, Denmark, UK, Norway, WBG

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For further information please visit: www.worldbank.org/npwww.ifc.orgwww.facebook.com/worldbanknepal

Thank you!!